It’s time to resolve the long standing tension between business and
By Roger Gudobba
The business requirements and the Information Technology (IT) capabilities are inter-connected in every organization, but the relationship between them is often misunderstood. How about your company?
Do your business executives feel most IT projects are delivered late and over budget? Do they feel the IT department tries to use a new technique when it might be overkill or not appropriate? Do they feel that the solutions are not quite what they expected or are missing some aspect? Does your IT department feel that the requirements for projects are not well defined? Do they feel the requirements sometimes change significantly after the project starts? Do they sometimes feel the timelines are unrealistic? Is this a lack of communication and understanding? Ultimately the IT side gets frustrated and the business side loses confidence in IT.
How are your IT budgets developed? Are some projects used to fund major projects to cover scope creep and overruns? Are they on a project-by-project basis? If the projects are done in isolation, the underlying architecture becomes inflexible and layered with unnecessary complications. Do you believe your business spent about the right amount of money on IT last year? Do you believe your business allocated that IT spending in about the right places? Do you believe your business got about the right returns for its spending on IT? If you didn’t answer yes to all three questions, then it’s time to consider change.
No longer will it suffice for businesses to go through periods of spending followed by periods of rationalizing cost to increase margins.
Companies will need to rethink how they operate. No longer will it suffice for businesses to go through periods of spending followed by periods of rationalizing cost to increase margins. Rather than identify the business need and from there build or acquire a system to meet that need, lenders need to take a different approach
In the book IT Savvy, Peter Weill states, “Now is the time for bold leaders to prepare their organization for the next couple of decades. We think one of the biggest opportunities and challenges for you will be the digitization of business.”
IT-savvy firms decide how they want to operate and proceed to build a digitized platform of business processes, IT systems, and data to execute on their operating strategy. The platform becomes a data-driven decision process with no silos of information or duplication of critical data. This will greatly reduce or eliminate errors and allow validation of data throughout the process.
Read more in Tomorrow’s Mortgage Executive